Remittances increase 21% to $2 billion

Rise can be attributed to a sharp drop in rupee’s value in early October

KARACHI: Overseas Pakistani workers sent home 21% higher remittances amounting to $2 billion in October 2018 as a historic drop in the rupee's value attracted increased flow of remittances through official channels - banks and registered currency dealers.

The overseas workers remitted $1.65 billion in October last year, according to the State Bank of Pakistan (SBP).

The rupee recorded a historic drop of Rs9.38, or 7.6%, in a single day to the then record low of Rs133.64 to the US dollar on October 9. Cumulatively, the rupee has depreciated by a massive 27% in five rounds in the last 11 months.



Besides, the crackdown against hundi/hawala operators also encouraged workers to send remittances through proper banking channels and registered currency dealers.



A significant recovery in international crude oil prices also helped Pakistani workers to send a higher amount to their homes.

Around 10 million Pakistanis are working in overseas markets while a majority of them are based in oil producing and exporting countries in Gulf countries.

Cumulatively, overseas Pakistani workers remitted $7.42 billion in the first four months (July to October) of FY19, which was 15% higher than the $6.44 billion received in the same period of preceding year, the central bank reported.

Inflows in October 2018 were approximately 38% higher than the $1.45 billion received in the previous month of September.



Country-wise details for October 2018 show that inflows from Saudi Arabia, the UAE, USA, the UK, other GCC countries (including Bahrain, Kuwait, Qatar and Oman) and EU countries amounted to $494.53 million, $412 million, $308.78 million, $298.80 million, $198.30 million and $57.36 million respectively compared with inflows of $461.07 million, $333.57 million, $215.64 million, $270.46 million, $184.76 million and $51.12 million in October 2017.

Remittances received from Malaysia, Norway, Switzerland, Australia, Canada, Japan and other countries during the month amounted to $230.68 million against $137.83 million in October 2017.

Published in The Express Tribune, November 10^th, 2018.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.